Posted by Coupon Clipper on January 23, 2008 at 11:06:58:
Currently I am remodeling to be able to offer two 500sf offices in a good location. I decided I could more easily rent, to better prospects, and get more money overall, with two 500’s than one 1000. Time will tell.
The issues are:
-That you might now be providing heat and AC where you were not before. Or, you have to divide it up and bill them, which is easy enough if it’s all rented. If units are vacant, you might have to eat the vacant shares.
-Who will clean the restroom and common area? I suggest you have each tenant sign an agreement concerning that issue. Either one tenant does it and gets a rent reduction, or they take turns, or an outside cleaning service comes in and they pay for that, whatever, they have to all agree.
Those are the only unique issues I’ve thought of.
Creating a shared office for lease - Posted by Steve B
Posted by Steve B on January 22, 2008 at 10:43:09:
A suite in an office building I own is soon to become vacant. Leasing this suite was slow the first time around given the local economic conditions. However, I have had plenty of interest from potential tenants who have wanted little spaces, such as only a few hundred square feet. These have been solo people or those with only one employee who do not wish to lease the full 1260 SF office.
I would appreciate any advice on creating a shared office suite for lease. I could put up to four small businesses into this suite if each only wanted one large private office with common use of the reception area, bathroom, and kitchen lounge. What are the potential downfalls to this idea? Anyone have experience doing this successfully?
Re: Creating a shared office for lease - Posted by brandoncbsre
Posted by brandoncbsre on January 30, 2008 at 06:10:55:
I am in a similiar situation on one of my properties. I bought and renovated a building for a real estate office. Prior to moving they subleased a back office to another company. So when I built out the new building I set it so that they could continue to do this. The building is 2900 sqft and the sublease tenant has about 700sqft. I lease the whole building to the RE office for $1200 a month and they sublease to the other company for $600. The RE office pays all utlities, takes care of cleaning the shared hallway and bathroom. They also provide phone, fax, and DSL to the other company.
We’re going on a year now and it seems to be working out for everyone. They have a good level of trust since the companies have been working in the same general space for a few years now. The benefit for me is that I get my full rent whether or not they have a subtenant in place. I only deal with one tenant instead of two.
Good luck with your building and I hope I have given you some ideas.